Abu Dhabi, March 14, 2006: The initial public offering of shares in Tamweel has raised AED 275 Billion, according to initial data from The National Investor, financial advisor, sole lead manager and book runner of the IPO. TNI’s estimates show that the IPO has been oversubscribed by almost 500 times with more than 140,000 subscribers submitting applications for shares.
Commenting on the results of the offering, a senior spokesperson at TNI pointed to the unique allocation policy that allowed both small and large investors to participate equitably in the IPO: “The response from investors has been overwhelming and we would like to thank them for showing strong interest and faith in Tamweel. We have plans to list Tamweel on the Dubai Financial Market in an expedient fashion, as soon as we have incorporated the Company”.
The Tamweel IPO sought to raise AED550 million – representing 55% of Tamweel’s capital – through shares offered to UAE nationals, UAE companies, GCC nationals, and expatriates residing in the UAE for at least 6 months. Shares were on offer at a nominal value of AED 1, with an additional 2 fils as subscription fees per share.
Explaining the allocation of shares, a senior official at TNI explained: “A unique allocation policy was created to offer the shares in three tranches. The first tranche – a maximum 137,500,000 shares – will be allocated equally among UAE National subscribers with a maximum allotment of 20,000 shares per subscriber. The second tranche which is capped at 297,521,000 shares will be distributed to UAE Nationals and UAE based institutions. The third tranche will allocate 114,979,000 shares for both expatriate investors residing in the UAE for at least six months, GCC nationals as well as Non-UAE institutions.”
Allocation of shares for the second and third tranche will be made on a pro rata basis. Refunds for the issue will also be made on March the 29th. Following this it is anticipated that Tamweel will call for a shareholders meeting to take place within 30 days from the refund date. With profits of AED62 million upto 2005, Tamweel expects to continue to benefit from boom in the real estate sector and is planning a regional expansion strategy.
About the National Investor: The National Investor is a leading UAE investment and advisory firm with a distinguished track record in investment banking, private equity, real estate and asset management. The Company is backed by over 120 UAE shareholders who come from the highest echelons of the business and political community. TNI is actively involved in investment banking, private equity, and asset management and is currently ranked as the leading arranger of public share offerings, having lead managed the largest number of public offerings in the UAE to date. For more information, please visit www.tni.ae
Issued on behalf of The National Investor by Hill & Knowlton.